Inflation is always and everywhere a monetary phenomenon -- Milton Friedman - page 3.

crwth

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Quote from: odolvlobo on November 15, 2021, 02:04:21 PM

Politicians are telling us that the current level of inflation is caused by "supply chain issues". That is a lie. They are lying in order to hide the fact that rising inflation is a direct result of their policies.

They are just making up stories to make sure that they wouldn't be blamed for what the economy is now.

Quote from: odolvlobo on November 15, 2021, 02:04:21 PM

The truth is what was said by the famous and highly respected economist Milton Friedman said: "Inflation is always and everywhere a monetary phenomenon." The problem is not the supply chain. The problem is that the huge influx of money into the economy from central banks and governments has fueled a tremendous surge in demand.

It's just that they felt too much power that they think it's going to be as easy as that but not really. It is everywhere because a lot of people are corrupt and just want to benefit themselves.

Quote from: odolvlobo on November 15, 2021, 02:04:21 PM

Companies can't find workers to fill the demand. Why not? Because the government paid everyone a bunch of money so they don't need to work. This is shown by the fact that the labor participation and unemployment rates are both low.

I don't think it's just because of the government paying money to them but it's that people probably have found other ways to earn knowing that cryptocurrency adoption is on the rise.

Darker45

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I can only speak for my country. The level of inflation has risen beyond the government target. Of course, the pandemic is largely to blame. But, to be fair to the government, the supply chain is indeed one of the severely affected aspects of the pandemic. This is indeed one of the reasons why the prices are rising.

I'm never defending my government's failures. But I'm afraid there are no pandemic-resistant policies. There must indeed be a policy weakness or perhaps unpreparedness somewhere, but a pandemic that has been ravaging the country for a couple of years now will surely its toll on the economy.

What I didn't notice in my country, though, amidst this rise in inflation is the surge in demand of goods and services. On the contrary, demands on many goods and services are falling. Restaurants, stores, gaming shops, schools, hotels, resorts, and other business establishments are closing. Instead of companies having a hard time filling their demand for labor, what I'm seeing are companies in retrenchment, companies reducing labor force, even companies declaring bankruptcy.

There is poverty as a result of the economic impact of the pandemic. People are no richer today than the pre-pandemic months.

Hydrogen

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Inflation and supply chain are the new healthcare reform.

Americans have wanted to fix their healthcare system for decades. But never managed to learn enough about the basic fundamental workings of healthcare to comprehend exactly how it is broken. Everytime healthcare reform is put on the table, americans wind up supporting the policies that are worst for them.

In 2022, we're like eskimos who want to discuss the finer points of snow and blizzard conditions. But lack the proper terminology and shared experience to do so effectively. That's my take on inflation, supply chain difficulties and similar recent trends.

Of course, there are some who know and comprehend the basic principles. Who have published in depth journalistic pieces on these topics for decades. But no one listens to them. No one reads what they write. And so all of the important connections and conclusions aren't likely to be made by enough people. In the way that it needs to be for society to accurately and effectively respond to crisis, in the way needed to avert negative trends.

odolvlobo

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Politicians are telling us that the current level of inflation is caused by "supply chain issues". That is a lie. They are lying in order to hide the fact that rising inflation is a direct result of their policies.

The truth is what was said by the famous and highly respected economist Milton Friedman said: "Inflation is always and everywhere a monetary phenomenon." The problem is not the supply chain. The problem is that the huge influx of money into the economy from central banks and governments has fueled a tremendous surge in demand.

Companies can't find workers to fill the demand. Why not? Because the government paid everyone a bunch of money so they don't need to work. This is shown by the fact that the labor participation and unemployment rates are both low.

Topic: Inflation is always and everywhere a monetary phenomenon -- Milton Friedman - page 3. (Read 368 times)